Edited version of private advice

Authorisation Number: 1051989045593

Date of advice: 31 May 2022

Ruling

Subject: Self-education expenses

Question

Are the expenses incurred for the study of a Diploma of Aviation (Instrument Rating) deductible as self-education expenses as per section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), including course fees incurred through the VET Student loan scheme?

Answer

Yes. The Commissioner accepts that the study has a direct connection to your income producing activities as per Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business.

Limit to the deductibility of self-education expenses

In certain circumstances you may have to reduce your allowable self-education expenses by $250. However, you may have other types of expenses some of which are not allowable as a deduction that can be offset against the $250 before you reduce the amount you can claim for allowable expenses. For more information search for quick code QC 16918 at ato.gov.au.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are a helicopter pilot within the tourism industry.

You contracted your services to an Aviation company since XXXX.

As per a letter dated the XXXX you were stood down due to COVID19 causing the business to temporarily stop operations.

You applied for and received JobKeeper payments as a sole trader.

In XXXX you commended study of Diploma of Aviation (Instrument Rating).

You have accessed the VET Student loan scheme to pay for the study.

You completed this course.

You commenced employment with another employer as a helicopter pilot in XXXX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

Income Tax Assessment Act 1997 section 26-20